Industry and reduction of emission of greenhouse gases
or mitigation of the effects of climate change.
New technologies have introduced more effective
and efficient ways to conduct business and to manufacture and
distribute products. Economies of scale have not always proven
to be savings over time but examine the way business is being
done with a view to sustainability has proven profitable. See
the Interface story below.
Diversification of business has to be weighed
against the economy of specialization. Risk taking as technologies
promise more economy is riskier! But again may be more sustainable!
Moving into the new century has demanded working
smarter and leaner delivery just in time, buying out rivals,
working off shore. The new century with emphasis climate change
is also providing new opportunities for innovation and cooperation
while working toward sustainability. Production of low energy
lighting designs, co-generation plants, high efficiency furnaces,
programmable thermostats and new building materials are a few
of the initiatives shown by manufacturers.
Many countries with fewer resources have met
these restraints earlier. Ontario's conservation culture should
support and provide incentives for Ontario companies. E.g. manufacture
of wind generators,
The following insert helps put the way of doing
business into the context of addressing climate change.
 Corporate
Social Responsibility (CSR)
What's Important In Business Today?
A New, Broader Vision
Businesses and corporations, sometimes reminded by members
of the public, are beginning to pay attention to more than making
money. They are realizing that there is a growing expectation
that they act as more than isolated profit-making centres. Corporate
Social Responsibility (CSR) is a vision of companies that
look at their broader place in society. It asks them to consider
areas of concern that include the well-being of their employees,
their communities - and society in general, both now and in the
future. It also asks them to look at the total effects of their
operations on the natural environment and work to improve them.
CSR is a way for corporations to become more responsible and
accountable to their shareholders, their customers, their employees
and the natural world.
What has led to this move towards Corporate Social Responsibility?
1) Public Demand As corporations have grown larger
and larger, and many have become multi-national, people have
begun asking them to be more open about how they operate. There
is a growing demand for "corporate disclosure" from
customers, suppliers, employees, communities, investors, and
activist organizations.
 2) Ethical
Shopping In recent years, more people are using their shopping
choices as a form of ethical activism. This selective shopping
has helped make companies pay more attention to the factors
that are important to their customers: treatment of employees
(no sweatshop labour), "fair-trade" prices for commodities
to the growers (to coffee, sugar, growers), and environmentally-friendly
processes and content ("green products," energy-saving
products, recycled content, forest-friendly, sustainably logged
paper products, etc.)
3) Less government regulation In the past corporations
depended on governments for legislation and regulations about
social and environmental requirements. With tax cuts and reduced
government regulation in many places, corporations are increasingly
taking on the voluntary role of selecting social and environmental
initiatives they believe to be important as business interests.
4) Stocks and Investment More people are considering
the social and environmental performances of companies when they
are deciding to buy stock in their operations. One report noted
that in the US in 1999 there was more than $2 trillion invested
in stocks that used screens for environmental and social responsibility.
5) Green and Socially Responsible Purchasing When
companies pay more attention to effects of their own performance
on social and environmental outcomes, they may then ask their
suppliers to do the same. Social and environmental purchasing
policies set out standards for ethical companies to deal with
the companies they buy from, helping the corporate responsibility
attitude to spread.
 The results? Companies that find CSR an important part of
how they do business come out ahead. They frequently find they
enjoy benefits
…to the company
- increased
sales and customer loyalty
- greater productivity and quality
- improved financial performance
- lower operating costs
- brand image and reputation
…to the community
- charitable contributions
- employee volunteer programs
- corporate involvement in community education, employment
and homelessness programs
- product safety and quality
…and to the environment
- more recycling in processes and product content
- improvements in product design for durability and functionality
- more use of renewable resources
- adding environmental management tools into business plans
(life-cycle assessment and costing, environmental management
standards, and eco-labelling)
Resources
Business Ethics: Corporate Social Responsibility Report 2004 Including
the 100 best corporate citizens for the year! http://www.business-ethics.com/
Corporate Social Responsibility: How's it going, how to get
involved? One man's view on the international scene. http://www.mallenbaker.net/csr/
The International Institute for Sustainable Development Championing
innovation, enabling societies to live sustainably. http://www.iisd.org/
Source: Elise Houghton, Environmental Education Onario (EEON)
2004
See Ecological footprint for additional information
and direction re reducing emissions as part of the response to
climate change.
See also the story of Interface Flooring is
a SUCCESS see menu bar- story in which a manufacturing company
is increasing its profit by working towards sustainability. Reducing
waste and saving energy are just two of the ways the company
re-examined its way of doing business.
See Activities
in 7.2.2.2
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